Second party Entrusted Audit

Second-party Entrusted Audit refers to the auditing of suppliers of their products or services by the demander according to their own requirements, also known as supplier evaluation/auditing. The auditors of the second party audits may come from the demander or may be entrusted by the demander to a third-party organization to implement the audits for the following purposes:

  • Prove that the supplier or partner continues to meet the requirements.
  • Promote suppliers or partners to improve the quality of their products or services and reduce production costs.
  • Improving the comprehensive quality of personnel and enhancing the ability for continuous improvement of enterprises.
  • Examine other aspects of supplier performance (such as social responsibility, business credit, etc.).

At present, the international practice is to entrust third-party institutions to implement, because third-party implementation has the following advantages:

  • To save the cost of investigation and improve the efficiency of investigation.
  • The audit activities are more independent and impartial, preventing the influence of the interests of the internal departments of the demander.
  • The audit team is more professional and competent.
  • Avoiding direct conflict between the demander and the supplier or partner.
  • Auditing evaluation reports are more authoritative and persuasive.

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